Mortgage giant Freddie Mac announced that it will make a new streamlined loan modification program for delinquent borrowers available now, instead of holding off the launch date to July 1 as originally planned.
Mortgage servicers will be able to offer a streamlined modification to borrowers who are at least 90 days late on their Freddie-owned or guaranteed mortgage. Borrowers cannot be more than 720 days delinquent on their loan, however, to qualify. Also, the loan must be at least a year old.
The new program will waive any document requirements for borrowers to receive the modification. The borrowers’ modification becomes permanent after he or she makes three on-time payments during a three-month trial period.
“Today, Freddie Mac is giving a green light to its mortgage servicers to speed up financial relief for potentially thousands of families with delinquent mortgages across the nation,” Freddie Mac said in a statement. “Freddie Mac is focused on adding momentum to the housing recovery by giving distressed borrowers more options to avoid foreclosure.”
Source: “Freddie Mac speeds up availability of streamlined loan mods,” HousingWire